401k early withdrawal penalties

difalcod · ‎March 9, 2020

I took two distributions in 2019. One before I was 59 1/2, and the other after. TurboTax is claiming I owe the 10% penalty to the sum of both of my withdrawals and not for only the first withdrawal. Each of the 1099-R forms are filled out properly for Line 7. That is, the first has a distribution code of 1, and the second a distribution code of 7.

How do I fix this in TurboTax?

macuser_22 · ‎March 9, 2020

A code 1 is an early distribution subject to the 10% penalty. A code 7 is not.

Where do you see the penalty for the code 7?

Look on schedule 2 line 6.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**